Selling rented property

[GlobalC]

Re: Selling rented property

gonna be a big day to get rid of these so i can stick the middle finger up to any DC's who think they can get the better of me!

[PlanB]

Re: Selling rented property

I will still tart the other flat up because it will be presented better, therefore hopefully get another full asking price

You need to do the maths. Compare what you would get for the flat in its current condition with what you'd get for it when refurbished. Then deduct all the lost rental income from when your tenant leaves, during the time the work is carried out up until you complete on the sale which could be several months down the line. And deduct the cost of the works too.

If you're making structural alterations or additions (loft conversion, adding extension or conservatory etc) you will grow the price, but anything more than a lick of paint may not be a financial investment you'll recover. Some buyers specifically want properties with potential to improve so don't write off that option just yet. You could place it on the market now in its shabby state and see what comes back. If no sensible offers then take it off the market and do it up before placing it back again.

And then of course there's the capital gains tax issue. Selling both flats in the same financial year (April - April) will mean that you only have the benefit of using one CGT allowance. If you sell the second one after April 6th 2015 you'll be able to offset a new year's allowance which is a £11k saving for you. HMRC will know these are investment properties because they'll be on your tax return as rent declared.

On the other hand timing is important so maybe it's a good idea to sell the other one asap. When interest rates start to rise (possibly as soon as October) and mortgages become less able to get (that's started already) then the market may cool off. That's the Governor of the Bank of England's plan anyway. Are both your mortgages on these flats fixed rate or variable rate and linked to BBR or Libor ?

From everything you've said the sale of the ground floor flat will ease your cash-flow massively which has got to be good news.

I'm really happy for you

[GlobalC]

Re: Selling rented property

Hi planB, following on from the my other thread. The flats are not sold yet, they are sold subject to contract and vacant possession of the flat b that has the non paying tenant. I had a text message today saying that she hasn't found anywhere to live - the section 21 date is the 25th july, if she doesn't bugger off its going to cause problems with sale of both flats and also with the court papers turning up in the mail I'm starting to get rather pissed with this tenant, I've offered help and even said I wouldn't seek court judgement for the arrears if she goes. So it looks like i will have to try an fast track the eviction FYI I have already sold my own property

[PlanB]

Re: Selling rented property

The flats are not sold yet, they are sold subject to contract and vacant possession of the flat b that has the non paying tenant. I had a text message today saying that she hasn't found anywhere to live - the section 21 date is the 25th july, if she doesn't bugger off its going to cause problems with sale of both flats and also with the court papers turning up in the mail I'm starting to get rather pissed with this tenant, I've offered help and even said I wouldn't seek court judgement for the arrears if she goes. So it looks like i will have to try an fast track the eviction

There's nothing you can do until 25th. If the Tenant doesn't go voluntarily on that date then you can apply to the court for possession using both Section 21 (AST expired) and Section 8 (rent arrears) as grounds. You will get a possession order under Section 21 even if she pays off those arrears before the hearing.

If she doesn't vacate the property on the date the court put in the Order then you have to apply to the court for an Eviction Warrant which you will get if you have a possession order. When the bailiffs go to the property she will be removed.

Why did she text you to say she hadn't found anywhere to go? Was she asking you for more time or was she responding to a text from you asking her to confirm her departure. I would be very wary of contacting her in any way which could be construed as harassment because she will use this against you in court. There's no reason to contact her before 25th July.

Please try to treat this property sale as separate from the fact that you've received a court claim for your debt. It's not the Tenant's fault that the bank have issued you with those proceedings.

Why would the problems of the Tenant in one flat have any impact on the completion of the sale on the other?

[PlanB]

Re: Selling rented property

are sold subject to contract and vacant possession of the flat b that has the non paying tenant. I had a text message today saying that she hasn't found anywhere to live - the section 21 date is the 25th july, if she doesn't bugger off its going to cause problems with sale of both flats and also with the court papers turning up in the mail I'm starting to get rather pissed with this tenant

Has she gone?

Today's the day

[GlobalC]

Re: Selling rented property

Hi PlanB, unfortunately not, but is supposed to be going on Monday. Fingers crossed! Oh and also to rub salt in the wounds my buyer has pulled out of the sale so now back to square one

[PlanB]

Re: Selling rented property

to rub salt in the wounds my buyer has pulled out of the sale

Okay, time to be ruthless.

Once the Tenant has gone on Monday you need to issue a summons for the rent arrears using MCOL. Hopefully you will have her forwarding address for service. No more Mr Nice Guy.

You have a deposit from her so you can lawfully keep that against the rent arrears unless your tenancy agreement said it could only be used to cover dilapidations (most tenancy agreements say that).

On the bright side she will be gone on Monday. If she had dug her heels in (and she easily could have done that) the alternative would be for you to issue a summons for possession, and even if that succeeded (which I expect it would due to your section 21 Notice) you would still have to apply to the court for an Eviction Warrant if she didn't quit on the date stated on the possession order. This legal malarkey takes five months on average.

Let me know what happens on Monday. I do hope she's not bluffing.

[GlobalC]

Re: Selling rented property

Hoorah she has gone!

[PlanB]

Re: Selling rented property

Hoorah she has gone!

Hallelujah


Now sue her for the rent she owes you. How much is outstanding?

[GlobalC]

Re: Selling rented property

1400 quid after I kept the deposit

[PlanB]

Re: Selling rented property

1400 quid after I kept the deposit

Plus dilapidations if you've got an inventory or schedule of condition from when she moved in.

Go for it

[GlobalC]

Re: Selling rented property

I've given here a week to come up with a payment plan before I effectively take things further - see I am understanding time to get working on the flat now

[PlanB]

Re: Selling rented property

I've given here a week to come up with a payment plan before I effectively take things further - see I am understanding time to get working on the flat now

Take photos of the condition she left it in before you start any work.

She's the sort of person who may raise a dispute with mydeposits if you don't return her deposit within 10 days or give her a reason why you won't. If she does that then you will be obliged to pay the whole deposit into the scheme prior to any arbitration which can take weeks and weeks.

It may be a good idea to send her a matter-of-fact letter telling her you won't be returning her deposit and state clearly this is because it's being used towards the rent arrears. You need to start a paper trail.

[GlobalC]

Re: Selling rented property

One flat sold, one to go and then this boy is heading to the sun

[PlanB]

Re: Selling rented property

One flat sold, one to go and then this boy is heading to the sun

Well this is good news

When you say "sold" do you mean that you have the property 'under offer' or have you actually exchanged contracts or completed?

Is this the flat where your tenant was in rent arrears but you couldn't in theory evict them legally since you hadn't insured the deposit?

Plan B x